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Bond Expert: Monday Wrap

Where does the Fed get the $ to buy treasurys with? They create it. This is the expected 'monotizing' of the debt that will create runaway inflation. Before the Fed starts buying, all this bailout money was financed by others.

But now the party is over. As the Fed prints money, the value of each dollar weakens. It may take awhile before inflation shows up, but markets look ahead, don't they. How long will 10 year bonds be under 3%? When it starts going the other way, the sky is the limit and Uncle Ben will have to run the presses around the clock to buy all the Treasury has to sell to pay the bills.